Bluerock Residential Growth REIT, Inc. (NYSE MKT:BRG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Bluerock Residential Growth REIT, Inc. (NYSE MKT:BRG) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, ladies and gentlemen, and welcome to Bluerock Residential Growth REIT's 3rd Quarter 2019 Earnings Conference Call. [Operator Instructions]. I would now like to introduce your host for today's call, Christopher Vohs, Chief Financial Officer of Bluerock Residential. Mr Vohs, please go ahead.

Christopher J. Vohs

Thank you and welcome to Bluerock Residential Growth REIT's third Quarter 2019 Earnings Conference Call. This morning, prior to market open we issued our press release and earnings supplement. The press release can be found on our website at under the Investor Relations tab. In addition, we anticipate filing our 10-Q later this week. Following the conclusions of our prepared remarks, we'll be pleased to answer any questions you may have.

Before we begin, please note that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. There are a variety of risks and uncertainties associated with forward-looking statements and actual results may differ from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings press release we issued this morning as well as our SEC filings.

With respect to non-GAAP measures we use in this call, please refer to our earnings supplement for a reconciliation to GAAP and the reasons management uses these non-GAAP measures in the assumptions used with respect to our earnings guidance. And with that, I'll turn the call over to Ramin Kamfar, Chairman and CEO of Bluerock Residential Growth REIT for his remarks.

R. Ramin Kamfar

Thank you, Chris and good morning everyone. In addition to Chris, with me today are several key members of our executive team including Jordan Ruddy, our President and Chief Operating Officer; Jim Babb, our Chief Investment Officer; Ryan McDonald, our Chief Acquisitions Officer; and Mike Difranco, our EVP of Operations.

I'm going to focus my remarks on key strategic accomplishments and financial highlights for the quarter and close with some capital markets commentary. Afterwards, Ryan will provide you operational transactional balance sheet and guidance detail. I'm pleased to report, we delivered another strong quarter at the operational level with sustained organic rent growth and value creation from our renovation platform while executing strategic asset recycling plan. Year-over-year same-store revenue and NOI growth was 4.3% further reinforcing our thesis of investing in highly amenitized multifamily assets in knowledge economy growth markets.

In terms of capital allocation, during the quarter we closed two portfolio dispositions consisting of seven assets for $369 million, delivering a substantial gain of $49 million. The sale of the seven assets were executed at an estimated in place economic cap rate of 4.7% which is a reflection of the high quality of our portfolio. During the quarter, we utilized proceeds to acquire two wholly-owned assets with substantially stronger longer-term growth profiles to invest in two preferred equity investments in operating communities with solid risk-adjusted returns and to fund our high return renovation program. Ryan will provide additional detail in his section.

Moving onto